Overview
- Tiger Global must pay capital gains tax on its $1.6 billion Flipkart stake sale to Walmart in 2018, India’s top court held.
- The decision quashes the Delhi High Court’s August 2024 ruling that had granted treaty-based exemption to Tiger Global’s Mauritius entities.
- The dispute centered on Tiger Global’s reliance on the India–Mauritius DTAA’s Article 13(3A) for shares acquired before April 1, 2017.
- Legal advisers say the ruling is set to reshape how India interprets tax treaties in cross-border transactions and M&A.
- The Authority for Advance Rulings had in 2020 deemed the structure tax-avoidant, and Walmart has not commented on the case.